Banking and Financial Institutions MCQ Questions and Solutions with Explanations

Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Section 7 Section 8 Section 9 Section 10 Section 11

41.
Which of the following statement is correct?

A. An insurance agent has fixed working hours

B. An insurance agent has to mark his attendance in office every day

C. An insurance agent works according to his schedule

D. An insurance agent cannot do any other work

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42.
Call Money Market is

A. For long term loans

B. For rediscounting bills

C. For very short term loans

D. For buying and selling of bonds

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43.
If all the banks in an economy are nationalised and converted into a monopoly bank, the total deposits

A. will decrease

B. will increase

C. will neither increase nor decrease

D. None of the above

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44.
What was the maximum limit of Statutory Liquidity Ratio did Narasimham Committee recommend?

A. 25%

B. 20%

C. 15%

D. 18%

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45.
As per RBI guidelines, when a counterfeit note is detected at the branch, it should be:

A. Branded with a stamp "COUNTERFEIT BANKNOTE"

B. Recorded in a separate register under authentication

C. acknowledged in the prescribed format of RBI and issued to the tenderer

D. All of the above

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46.
The committee constituted by SEBI under the Chairmanship of Justice Dr. Dhanuka had which of the following terms of reference?
1. Review of inter-alia, the SEBI Act, SCR Act, Depositories Act and the provisions of the Companies Act pertaining to the capital market.
2. To review, the penal provisions contained in the Sections 15(A) to 15(J) of the Securities Laws (Amendment) Act.
Select the correct answer

A. Only 1

B. Only 2

C. Both 1 and 2

D. Neither 1 nor 2

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47.
The concept of inflationary gap was given-

A. By Fisher

B. By Friedman

C. By Keynes

D. By Pigou

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48.
Identify the quantitative credit control methods among the following:
1. Bank Rate
2. Credit Rationing
3. Open Market Operations
4. Variable Reserve Ratio
5. Selective Credit Control
6. Liquidity Ratio

A. 1, 2, 3 and 4

B. 2, 3, 4 and 5

C. 1, 2, 5 and 6

D. 1, 3, 4 and 6

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49.
The NABARD was established in the year . . . . . . . .

A. 1970

B. 1990

C. 1982

D. 1947

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50.
Nationalisation of banks aimed at all of the following except

A. removal of control by a few

B. provision of control by a few

C. provision of adequate credit for agriculture, small industry and export units

D. encouragement of a new class of entrepreneur

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Banking and Financial Institutions MCQ Questions and Solutions with Explanations | Commerce

41. Which of the following statement is correct?

Answer & Solution

42. Call Money Market is

Answer & Solution

43. If all the banks in an economy are nationalised and converted into a monopoly bank, the total deposits

Answer & Solution

44. What was the maximum limit of Statutory Liquidity Ratio did Narasimham Committee recommend?

Answer & Solution

45. As per RBI guidelines, when a counterfeit note is detected at the branch, it should be:

Answer & Solution

Answer & Solution

47. The concept of inflationary gap was given-

Answer & Solution

48. Identify the quantitative credit control methods among the following: 1. Bank Rate 2. Credit Rationing 3. Open Market Operations 4. Variable Reserve Ratio 5. Selective Credit Control 6. Liquidity Ratio

Answer & Solution

49. The NABARD was established in the year . . . . . . . .

Answer & Solution

50. Nationalisation of banks aimed at all of the following except

Answer & Solution

Read More Section(Banking and Financial Institutions)

41.
Which of the following statement is correct?

42.
Call Money Market is

43.
If all the banks in an economy are nationalised and converted into a monopoly bank, the total deposits

44.
What was the maximum limit of Statutory Liquidity Ratio did Narasimham Committee recommend?

45.
As per RBI guidelines, when a counterfeit note is detected at the branch, it should be:

47.
The concept of inflationary gap was given-

48.
Identify the quantitative credit control methods among the following:
1. Bank Rate
2. Credit Rationing
3. Open Market Operations
4. Variable Reserve Ratio
5. Selective Credit Control
6. Liquidity Ratio

49.
The NABARD was established in the year . . . . . . . .

50.
Nationalisation of banks aimed at all of the following except